U.S. Justice Department: ‘Mission Accomplished’ in Microsoft antitrust case

“The Department of Justice issued a news release this morning saying, ‘competition and consumers have benefited from the final judgments entered because of the Department’s antitrust enforcement efforts against Microsoft,'” Benjamin J. Romano reports for The Seattle Times.

“The Justice Department was joined by a handful of states. But several others, known as the California group, disagreed,” Romano reports. “As reported by Bloomberg News, antitrust regulators from California and five other states said in a filing today that Microsoft still maintains a monopoly over personal computer operating system software and some provisions of the settlement have yielded ‘little, if any, tangible pro-competitive results.'”

“The Justice Department cited several examples of middleware competitors — including Web browsers such as Mozilla’s Firefox, Opera, and Apple’s Safari; and multimedia players from Apple and Adobe — to support its assertion that the final judgment has protected competition,” Romano reports.

“It’s important to note — and the Justice Department does — that the settlement was only aimed at preserving competition in this middleware software category. It was not an attempt to roll back Microsoft’s monopoly in operating system software,” Romano reports.

Full article here.

Yet another travesty atop the travesty.

In the autumn of 1998, Apple’s recovery under Jobs was still fragile, its relationship with Microsoft forever precarious. If the DOJ had any prayer of persuading the company to throw caution aside and sign up for the trial, [Gary Reback, lawyer and antitrust specialist,] was clearly the man to see. In the mad scramble for fresh evidence and plausible witnesses, whatever lingering resentments Klein harbored toward the monomaniacal lawyer had receded. Reback was simply too useful, too plugged-in and switched-on, to be ignored. In a series of phone calls that September, Klein told Reback that he desperately wanted the Apple story to be part of the trial – and he wanted Jobs to be the one to tell it. Though the DOJ’s witness list was shaping up nicely, Klein was concerned that it lacked star power, featuring as it did only one big-name CEO – Jim Barksdale. Klein told Reback, “We have an Übermensch problem.”

Jobs was certainly Über, but no one had ever accused him of being a mensch. Visionary, volatile, volcanic, and vain, Apple’s CEO had made no secret of his skepticism about the DOJ’s capacity to prosecute Microsoft. “The government is bullshit! The government is bullshit!” he’d barked when a government lawyer visited him that spring to ask for his help in building the case. “You guys have done nothing, you haven’t figured it out, you’ve been too slow, you’ll never change anything. This is an incredibly sensitive time for Apple. Why should I jeopardize the future of my company when I have no faith that the government is going to do anything real?”

To Jobs, “real” meant one thing: breaking Microsoft up. For all his doubts about the DOJ’s competence, he was now grudgingly impressed by the government’s progress. In late September, after several lengthy talks with Reback, his friend Bill Campbell, and a number of DOJ intermediaries in the Valley, Jobs agreed to have a conversation with Klein about the possibility of testifying. When the two men connected by phone, with Jobs on vacation in Hawaii, he wasted no time in getting to the point. He wanted to hear Klein’s thinking on remedies.

Are you going to do something serious? Jobs demanded. Or, he asked, “Is it going to be dickless?” – Wired, “The Truth, The Whole Truth, and Nothing But The Truth,” Issue 8.11 – November 2000

78 Comments

  1. Citing Safari as evidence of competition in Windows middleware is a bit off. It has just been introduced from another platform. Why don’t they mention how smoothly the various middleware apps work under Windows? Has Microsoft stopped writing the OS specifically to cripple other vendors’ middleware?

  2. Somehow, someway, something’s got to be George Bush’s fault in all of this, I mean, it’s just gotta be his fault. It’s also cloudy at my home today, which is probably due to global warming, which is all George Bush fault as well. I also work on a Dell at my job, which is also George Bushs fault… Man, once “Her Thighness” takes over the world will just be a perfect tax me up the rear paradise!

    Light up them flame throwers and begin the carnage!

  3. > It was not an attempt to roll back Microsoft’s monopoly in operating system software…

    Vista will do more to “roll back” the Microsoft OS monopoly that anything the U.S. Justice Department has done.

  4. “It was not an attempt to roll back Microsoft’s monopoly in operating system software,” Romano reports.”

    Oh I see, that’s a different issue – got it – I think.

    What I wonder is, how much did MS have to pay for this little song and dance. Even with billions you would think that MS would eventually run out of money.

  5. Weird metrics:
    Citing Safari as evidence of competition in Windows middleware is a bit off. It has just been introduced from another platform. Why don’t they mention how smoothly the various middleware apps work under Windows? Has Microsoft stopped writing the OS specifically to cripple other vendors’ middleware?

    Safari is available for Windows.

  6. Yes, Safari is available for Windows. It has just been introduced. It has been available for only a few months. It is not a new browser but has been introduced from another platform (OSX) where it developed. So, is Safari a good metric for how middleware friendly Microsoft is?

  7. Were the Feds serious about weakening Microsoft’s hold it would have opened up its own procurement. But while Justice had them in court, they were mandating Windows and Office in their own contracts. Even today some of our in house web sites will pop up an error advising they only work with Internet Explorer. Waivers to install alternatives like Firefox are denied.

    As it happens, by limiting the scope of the trial, the Government was limited in its penalties. The new administration came in with its “sweetheart” deal to settle the case, and all that was left was a monitoring scheme. Caldera potentially could have done much more damage because they had a mountain of dirt against Microsoft. THAT was a trial I would have paid to see. But they settled two weeks before trial. Caldera got a few hundred million, but was required to destroy that dirt so no one else could use it.

    But after all the billions Microsoft has paid in settlements, the threats remain. The biggest? Apple.

  8. @Weird metrics,

    I agree with you… Safari should not even be in that heap for comparison of mid-ware that showed the justice depart that healthy competition was still alive.

    At the time, Apple was somewhat forced – yet agreed to install Explorer as the default browser. Apple agreed because Microsoft saw Office Sales for Mac as a HUGE income.

    Plus, I really love how Apple FINALLY unwinded and got out of the Internet Explorer agreement. Or rather JUST moved on and away from it when OSX matured. Safari, was Apples’ saviour to this trouble… Apple competed cos it was being strangled!!!!

    Yes – Safari 3 is available on Windows in BETA still – as it is for Mac. Equal performance I believe for both platforms. Yet, the proparitary nature of JAVA etc. that MS uses in Explorer may infact aid in the overall better performance and preferred use by Windows Users. Good for them… so they LIKE SONY and how they do business too.

    hahahahahha – open-source is great. THX to open-ness.

    j

  9. “It’s important to note — and the Justice Department does — that the settlement was only aimed at preserving competition in this middleware software category. It was not an attempt to roll back Microsoft’s monopoly in operating system software,” Romano reports.

    Oh really? Did DoJ finally admit that there is no punishment for Microsoft’s abuse of their monopoly? You can abuse your monopoly anyway you want and destroy people’s lives and when you are caught, you are not responsible for all damages nor nor past actions. You just need to stop doing a Bad Thing(TM) and everything smells roses.

  10. Look, I HATE Microsoft with a passion, but ANYONE that thinks the DOJ should have broken them up is an absolute idiot. First off, the US economy would have taken a MAJOR hit, and secondly, it probably would have done Microsoft a favor anyway.

    Apple has been more successful during the last 5 years than they were at any time during the entire decade of the 1990s, so it’s hard to argue with the results in the marketplace. Microsoft does NOT have the strangehold on everything like they did in the ’90s, and consumers are all better off for it.

    The US is a free market country and not a socialist haven like the EU or Canada. Left alone, the market will take care of itself without the government’s involvement, and this case involving Microsoft is clear evidence of that fact.

  11. Two things:
    1. Look at the artificially high prices of Windows Vista (and M$ Office) sustained only by having an illegally leveraged monopoly.
    2. Track how M$ changed it’s political donations as the “K-St Project” matured. They went from balanced to very heavily Republican — and it bought them a pass from the Bush “Justice” Dept.

  12. As Raymond points out, the biggest threat to Microsoft now is Apple. (See Fake Steve today for his thoughts on a rumored Microsoft-RIM merger, and why it doesn’t matter.) And Microsoft can pay off the Justice Department to get what they want, but they can’t pay off Apple.

    (I’m going to master two-thumbed iPhone typing if it kills me…)

  13. Well, since one of you smug liberal maggots brought it up, let’s compare attorneys general:

    • Civilians killed by Ashcroft: 0

    • Civilians killed by Gonzales: 0

    • Civilians killed by Reno: 80
    _______________________________

    • Innocent people put in prison by Ashcroft: 0

    • Innocent people put in prison by Gonzales: 0

    • Innocent people put in prison by Reno: at least 1

    _______________________________

    • Number of obvious civil rights violations ignored by Ashcroft: 0

    • Number of obvious civil rights violations ignored by Gonzales: 0

    • Number of obvious civil rights violations ignored by Reno: at least 1

    _______________________________

    • Number of innocent civilians accused of committing heinous crimes by Ashcroft: 0

    • Number of innocent civilians accused of committing heinous crimes by Gonzales: 0

    • Number of innocent civilians accused of committing heinous crimes by Reno: at least 1

    _______________________________

    • Number of 6-year-old boys deported to totalitarian dictatorships by Ashcroft: 0

    • Number of 6-year-old boys deported to totalitarian dictatorships by Gonzales: 0

    • Number of 6-year-old boys deported to totalitarian dictatorships by Reno: 1

  14. Who brought up Janet Reno, you dolt?

    So… you think because one criticizes the policies of the current administration, they must be proponents of former atty.’s general?

    Thank you for demonstrating so nicely how fscking stupid you are. Nice to know you can count as high as 80. Here are a couple more numbers for you to ponder:

    American Civilians Killed on 9/11: 2,973
    American Soldiers Killed Since Bush Proclaimed “Mission Accomplished”: 3,596

    Die in a hole, maggot.

  15. @Get Real

    “The US is a free market country and not a socialist haven like the EU or Canada.”

    Hey “Get Real” you need to “Get Out” more, you’ve not likely ever been to Canada or the EU. Now I know you’re going to come back with a clever little response like “why would I want to visit those shitholes” so I’m just gonna tell you to fsck off now.
    Peace and flowers

    p.s. MDN Magic Word “called” as in your mom just did.

  16. • Number of obvious civil rights violations ignored by Ashcroft: 0
    • Number of obvious civil rights violations ignored by Gonzales: 0
    • Number of obvious civil rights violations ignored by Reno: at least 1

    I think that most thinking people would put the number for Ashcroft and Gonzales in the hundreds or thousands. One can look at the high profile terror charges brought against civilians and military personnel and then dropped or thrown out by the court.

    By the way, I am by no means a die-hard liberal and can honestly say I voted for Reagan (x2) but I am appalled at the cavalier attitude of Bush Jr. (and Cheney) towards civil rights and personal freedom. Being conservative does not equal being blind and brain dead.

  17. No. “Oops” is right.

    • Number of obvious civil rights violations ignored by Gonzales: 0

    But the
    • Number of obvious civil rights violations perpetrated by Gonzales: 10s of thousands.

    Let’s give credit where credit is due…

  18. Re: Breaking up Microsoft

    “First off, the US economy would have taken a MAJOR hit”

    That’s funny and sad. It’s also complete bullshit and FUD.
    Your understanding of the U.S. economy is sorely lacking.
    Did you go to college?

  19. • Number of improper or illegal Justice Dept. actions remembered by Gonzales: 0

    GONZALES: Well, Senator, putting aside the issue, of course, sometimes people’s recollections are different, I have no reason to doubt Mr. Battle’s testimony [about the November meeting].
    SESSIONS: Well, I guess I’m concerned about your recollection, really, because it’s not that long ago. It was an important issue. And that’s troubling to me, I’ve got to tell you.
    GONZALES: Senator, I went back and looked at my calendar for that week. I travelled to Mexico for the inauguration of the new president. We had National Meth Awareness Day. We were working on a very complicated issue relating to CFIUS.
    GONZALES: And so there were a lot of other weighty issues and matters that I was dealing with that week.[

  20. “So… you think because one criticizes the policies of the current administration, they must be proponents of former atty.’s general?”

    ______________

    Yes! And there’s no use in denyin’ it, cuz I ain’t buyin’ it.

  21. “Don’t you mean: number of 6-year-old boys returned to their parental home instead of being held hostage in a hostile country?”

    _______________________

    Uhhhhhh, NOPE! I tend to say *exactly* what I mean. That you would consider the U.S. a hostile country speaks volumes about the liberal mindset. That you would send storm troopers into the house of his relatives, kidnap him, and send him back to Castro’s paradise makes me want to puke. The boy’s mom risked and lost her life getting him here. Liberals get more and more disgusting by the day.

  22. “I think that most thinking people would put the number for Ashcroft and Gonzales in the hundreds or thousands. One can look at the high profile terror charges brought against civilians and military personnel and then dropped or thrown out by the court.”

    ________________

    Let’s have a little proof, eh. And, uh, no, you can’t use liberal sources. No Katie Couric. No New York Times. No Daily Kos. Et cetera.

    Good luck! Ready…..set…….go!

  23. about Get Real’s comment: “The US is a free market country and not a socialist haven like the EU or Canada.”

    More anti-global propaganda from the AENUS (Australia England ‘n US). Gee these sure hate diversity.

    I think I will pass on the AENUS reality. Global truth is much more appealing.

  24. WHY do so many MDN comment threads need to be junked up and ruined by all this liberal vs conservative crap?

    No one cares what you think. No one. Any of you.

    As they say, arguing on the internet is just like being in the Special Olympics. Whether you win or not, you’re still retarded.

  25. @ Raymond from DC

    “Were the Feds serious about weakening Microsoft’s hold it would have opened up its own procurement. But while Justice had them in court, they were mandating Windows and Office in their own contracts.”

    Absolutely!

    As per the FAR, there is required to be a signed “J&A” for that non-competitive requirement. MDN Readers should take this as their cue and submit formal FOIA (Freedom of Information Act) requests to receive a copy. Without a properly signed J&A, the Feds mandate of Office & Windows is illegal.

    If the FOIA turns up empty, send the results to Apple’s legal department.

  26. @ Oops

    “That you would consider the U.S. a hostile country speaks volumes about the liberal mindset. That you would send storm troopers into the house of his relatives, kidnap him, and send him back…”

    You think that the US is not hostile to Cuba? You think that those “Stormtroopers” were not from the US? You think that everyone who leaves a message here is from US?

    You are a xenophobic fool.

  27. You have gone into a political blackhole in this thread.

    The issue is what can/should be done about Microsoft now to weaken it further.

    A lot of people read these postings; give our leaders some clues. Yes Apple and Google are doing a great job but they can always use some help from the field.

    Finally we are getting some traction from decades of being slowed down by MS. We almost wouldn’t get the Internet as we know it today. We dodged a bullet called Redmond.

  28. “You think that everyone who leaves a message here is from US?”

    _____________________________

    Hmmmm, I really don’t remember saying that. If I *did* say that, you go ahead and point that out for me. Would you? C’mon, I’m waiting.

    Oh, and uh, by the way, you really, *really* need to look up the work “xenophobia”. You misused it here. Me thinks you were a little too anxious to use your “big word of the day”. Ooohh, five syllables and all that. Impressive! Now if you only knew what it meant. Liberals are shit wits.

    _____________________________

    Then you uttered: “You think that the US is not hostile to Cuba? You think that those “Stormtroopers” were not from the US?”

    ______________________________

    Yes, the U.S. is hostile to Cuba, as well we should be, you lefty mofo. We should’ve assinated Castro years ago.

    But the U.S. could’ve given Elian a life. Instead, he lives under the oppressive yoke of Castro’s communist paradise. I’d love to send you there.

    The storm troopers were from the U.S., yes. Many things and people are from the U.S., and *no one thing* represents the U.S. all by itself, except perhaps for the word, “superiority”.

    It’s the best country in the world. The best country the world has evern known, in fact. Deal with it!

  29. National Meth Awareness Day

    Did he just make that up? I didn’t get the memo on that. Was that before or after National Lying Attorney General Day?

    Nobody can deny that the breakup of AT&T was a good thing, and the breakup of Microsoft according to Judge Jackson’s recommendation was equally as promising. Only the EU has been spanking them as they deserve.

  30. “How does it feel to be kissing Ann Coulter’s ass or, more importantly, how does it feel to have her do your thinking for you?”

    ____________

    Awww, how cute. This is supposed to be your big “gotcha” moment. Right?

    Well, I hate to break up your fun, but these comparisons have already been made. Conservatives know this. But for you it’s a revelation!

    Secondly, the simple act of *agreeing with someone* is not equivalent to “kissing their ass” or having them do your thinking for you. If it does, then every liberal that hates and obsesses over George Bush is not an independent thinker, but rather an “ass kisser” of the very first person to ever hate and obsess over George Bush.

    Thirdly, your failed attempt at a gotcha moment didn’t address the *actual substance* of the matter, now did it. In other words, the facts are the facts are the facts, and you were incapable of dismantling them, so you tried, and failed, to distract.

    Awww, poor boy. Thought he was smart. That’s the problem with liberals. They all think they’re smart on a political level, and yet they are quite retarded in that realm.

  31. The actual words of Oops… not much there:

    Well, since one of you smug liberal maggots brought it up, let’s compare attorneys general:

    You did, when you brought Alberto Gonzales into the mix. Can’t handle the truth? Deal with it!

    Yes! And there’s no use in denyin’ it, cuz I ain’t buyin’ it.

    Well my goodness, but you are just too clever by half.

    Now now, that is no way to talk to your mother. Her titties may have finally dried up, but I’m sure you can find nourishment elsewhere.

    Care to document this for us, hotshot?

    Let’s have a little proof, eh. And, uh, no, you can’t use liberal sources. No Katie Couric. No New York Times. No Daily Kos. Et cetera.

    Good luck! Ready…..set…….go!

    Again, you libs are too clever by half. You do yourselves proud.

    Nor what you think either! Eh, Bub?

    Hmmmm, I really don’t remember saying that. If I *did* say that, you go ahead and point that out for me. Would you? C’mon, I’m waiting.

    Oh, and uh, by the way, you really, *really* need to look up the work “xenophobia”. You misused it here. Me thinks you were a little too anxious to use your “big word of the day”. Ooohh, five syllables and all that. Impressive! Now if you only knew what it meant. Liberals are shit wits.

    Yes, the U.S. is hostile to Cuba, as well we should be, you lefty mofo. We should’ve assinated Castro years ago.

    But the U.S. could’ve given Elian a life. Instead, he lives under the oppressive yoke of Castro’s communist paradise. I’d love to send you there.

    The storm troopers were from the U.S., yes. Many things and people are from the U.S., and *no one thing* represents the U.S. all by itself, except perhaps for the word, “superiority”.

    It’s the best country in the world. The best country the world has evern known, in fact. Deal with it!

    Awww, how cute. This is supposed to be your big “gotcha” moment. Right?

    Well, I hate to break up your fun, but these comparisons have already been made. Conservatives know this. But for you it’s a revelation!

    Secondly, the simple act of *agreeing with someone* is not equivalent to “kissing their ass” or having them do your thinking for you. If it does, then every liberal that hates and obsesses over George Bush is not an independent thinker, but rather an “ass kisser” of the very first person to ever hate and obsess over George Bush.

    Thirdly, your failed attempt at a gotcha moment didn’t address the *actual substance* of the matter, now did it. In other words, the facts are the facts are the facts, and you were incapable of dismantling them, so you tried, and failed, to distract.

    Awww, poor boy. Thought he was smart. That’s the problem with liberals. They all think they’re smart on a political level, and yet they are quite retarded in that realm.

    Anyone care to give a political analysis of Oops’ musings?

  32. Oops, you had me at “We should’ve assinated Castro years ago.”
    Who else do you want to “assinate”. But you really come apart when you start ranting about America being superior and the greatest etc. Hey, it’s OK, but it would be better if you didn’t live there. Now go back to the “Free Republic”, your buddies are all waiting for you.

    What a dip shit.

  33. Get Real,

    “The US is a free market country and not a socialist haven like the EU or Canada.”

    “Left alone, the market will take care of itself without the government’s involvement, and this case involving Microsoft is clear evidence of that fact.”

    I really can’t stand cretins of either political persuasion. The only way you can define a free market is when there is absolutely NO government regulation or intervention. To varying degrees ALL countries have government intervention.

    Example: The federal reserve intervenes on interest rates. The federal reserve is an arm of the federal government, it is independent but it still intervenes.

    Example: By the mere fact that the United States has anti-trust laws this regulates how companies can do business; it is yet another means of regulation. And in the case of Microsoft it did set quite stringent guidelines that Microsoft had to adhere to. I have little doubt that without intervention by US and E.U. regualtors the market place would be entirely different.

    I could give more examples but after giving a five and half hour economics class I’m really not in the mood for someone whose knowledge of economics is based on the number of coupons they sent in to get their degree.

    One final point, don’t ever confuse social democratic and socialist governments. A socialist government has a long-term goal of nationalising industry.

    A communist government seizes control, nationalises everything and usually fails to compensate the former owners. Their long-term goal is a classless society (which is a contradiction in itself).

    On the other hand social democratic governments intervene to provide services for the less well-off and, as well, provides free or subsidised medicine, health, education and so on. Social democratic economies do NOT nationalise they just provide services.

    There is only one country that doesn’t have a universal health system and that’s America.

    So according to your analysis the rest of the OECD are a pack of socialists and you live in a free market. Yeah right!

  34. Road Warrior,

    I’m Australian and we have government intervention AND we have free access to our hospitals. Don’t be like Get Real, try to think before you start slinging around sweeping statements. You might also might want to read my previous post.

    P.S. To all those ideologues; try thinking with your brain instead of your heart. It sure as hell helps the debate immeasurably.

  35. Erratum:

    In my first post second last par. it should read:

    “…There is only one country in the OECD that doesn’t have a universal health system and that’s America.”

    Now boys and girls let’s try and keep this site related to all things Mac. Eh, huh, mmm?

  36. “Mission Accomplished”
    I’m still trying to figure out what the mission was. Was there more than one?

    First Mission? – Denial. (As in- “I am not gay” – R. Sen. Craig)

    Second Mission? – Lie (As in- we have proof of WMDs- Bush Admin)

    Third Mission? – Obfuscate – (as in hide truth under guise of executive privilege)

    Fourth Mission? – Patriot Act (as in erosion of Civil Liberties “There ought to be limits to freedom” – George W. Bush)

    Ok yeah, Mission Accomplished!

  37. Hey “Oops,” y’know, Schwarzenegger’s welcome to call himself a Mac user if he likes. We can even learn to tolerate Rush Limbaugh. But let’s be honest–the Mac isn’t meant for miserable little fuckstains like you. GTFO.

  38. No surprise to me, I never expected any decent resolution from the case. Microsoft had already destroyed Netscape, had bullied vendors into the exclusivity of their operating system. The damage was done, who were they going to recompense? This “settlement” amounts to a slap on the wrist, a “don’t do that again.”

    I am at least comforted in the knowledge that MS has not had a successful product launch since XP, and their busines is in a slow spiral down while Apple rockets upward. Ten years from now they will be enterprise solutions providers and nothing more.

  39. Hey Get Real

    Do you even know what constitutes socialism? Heavy government ownership would be one mark of a socialist country. By that measure, Canada doesn’t qualify, doesn’t even come close.

    You right wingers make these sweeping generalization that anything “left” of the US must therefore be socialist which also implies that the US is the pinnacle of economic development. A shrinking middle class and a massive government deficit created by *cough* Republicans belies that claim.

    I agree that Apple doesn’t need any protection from the government but if you looked objectively you’d see that there are many countries to the left of the US who are far better developed both economically and socially and healthier by almost any measure.

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